Visa Stock Seen Rising 89% as International Growth and UK Project Boost Outlook

Visa stock (V) is currently trading at $360.66, about 6% below its high. Analysts expect significant upside, with a target price of around $683, suggesting an 89% total return and an annualized internal rate of return (IRR) of 17%. The stock's performance is influenced by its strong international revenue growth, which has surged at a compound annual rate of 17.1% from fiscal 2021 to fiscal 2025, compared to 8.8% in the U.S.

In the UK, Visa is part of a new payments utility project led by the UK Payments Delivery Company, which aims to replace existing interbank payment systems. The project has raised about £50 million and includes major banks like NatWest, which has also become a new Visa client. Visa CEO Ryan McInerney emphasized the company's strategy of local investment, including a €500 million commitment to Europe over the next decade, to address sovereignty concerns.

Visa's fiscal third-quarter revenue grew 14.36% to $11,633 million, but earnings per share (EPS) missed estimates due to severance costs and litigation provisions. Analysts are divided, with 27 recommending a buy, 9 outperform, 3 hold, 1 underperform, and 1 no opinion. The consensus target price is around $419.

Looking ahead, Visa's potential upside depends on whether new national payment systems focus on domestic transactions or expand into cross-border spending. The company's cross-border role remains strong, with Visa Direct reaching 18 billion endpoints. The next earnings report is expected in late October, with consensus estimates calling for adjusted EPS of around $3.43 on revenue near $12.1 billion.